electronic design 2015 salary survey

8/19/2019 Electronic Design 2015 Salary Survey

1/13


2/13

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NANCY K. FRIEDRICH

Content Director

[email protected]

W

elcome to this year’s annual com-

pensation survey. In surveying our

audience across our family of brands,

we found similar findings from Elec-

tronic Design to Microwaves & RF, Machine Design, Hydrau-lics & Pneumatics, and Global Purchasing. Among the major

trends were more focus and interest on the Internet of Things

(IoT) and Industrial Internet of Things (IIoT)/Industry 4.0.

Engineers are increasingly working on products and solutions

for the IoT, while they and procurement professionals and

management are also looking at how the IoT will impact the

way they do their jobs.

Job satisfaction is currently very high. Engineers, for exam-

ple, feel well compensated for their work and are generally

happy with their career paths. They also feel optimistic about

the state of the engineering industry, although some concernsremain about the economy, outsourcing, and IoT adoption.

Among our Machine Design and Hydraulics & Pneumatics

audiences, for example, there is some concern over manu-

facturing jobs being minimized or even phased out with IoT

adoption.

For engineers, one of the biggest challenges remains staying

up to date on the latest technologies. To accomplish this goal,

our audience cites many online resources, ranging from white

papers and e-books to webcasts and videos. They of course

contend with time-to-market challenges and other job pres-

sures, but by and large, they get a lot of satisfaction from over-coming those challenges. Interestingly, when they need to take

a break and clear their heads, they most commonly shared that

they go for a walk.

Across the industries we reach, more individuals are relying

on smartphones to tie up business at the end of the day or pre-

pare for what faces them in the morning. They also are payingmore attention to social-media outlets like LinkedIn, Twitter,

and Facebook. Some cite that they use Twitter (and Facebook,

but to a lesser extent) to stay updated, while LinkedIn contin-

ues to reign as the career-networking resource.

What about the future? Across the board, we continue to

see the majority of responses pointing to concern over the

next generation. The consensus is that, despite today’s efforts

to bring more students into technology fields of study and

careers, we’re facing an engineering shortage. It follows that

specialized areas, like the microwave and radio-frequency

(RF) market, are facing an even bigger chasm as companieslook to the next generation. Many of the people that laid the

groundwork for today’s technical breakthroughs have retired

or are nearing retirement. While they brought in talent behind

them, most do not think it is enough to bridge the gap.

Hopefully, all of today’s technical-outreach efforts will

increasingly produce interest from the next generation. In

the meantime, don’t forget to evangelize engineering and

technology-related fields in your own circles. The majority

of survey respondents said that they would recommend their

professions, so why not start if you haven’t already? And don’t

forget to take a deeper look at how people in your industry arecompensated to see where you stand.

How Do You Stack Up?

Editorial

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3/13

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A

ccording to the nearly 3,000 electrical engi-

neers that participated in Electronic Design’s

2015 Salary and Opinion Survey, the engi-

neering professions is in a period of transition.

On the one hand, companies are still in the process of recover-ing from the economic recession and risk-averse corporate cul-

ture. On the other hand, the Internet of Things (IoT) is slowly

maturing into a reality for technology companies and igniting

demand—and competition—for engineering expertise.

With priorities shifting out of cost management and into

developing new technologies for an IoT ecosystem, the

employment outlook for engineers improved slightly over the

last year. In general, companies are increasingly motivated to

hire experienced engineers and provide slightly higher com-

pensation to keep them. But at the same time, concerns about

working conditions, job security, outsourcing, and continuingeducation have grown more entrenched in the psyche of the

typical engineer.

The majority of engineers anticipate that their companies will

either maintain or increase hiring next year. But approximately

51% of respondents—a percentage that has been steadily rising

over the last five years—noted that their companies were having

difficulty finding qualified candidates, especially in embedded

and software design. “Extreme specialization in engineering

makes job mobility difficult on the technical path,” said one

respondent, “and many employers seem to be unwilling to hire

or train people who are merely close enough. The glut of engi-neers seeking work allows employers to be extremely choosy in

hiring candidates.”

According to this year’s survey, almost two-thirds of engi-

neers think a career in engineering and the potential for salary

advancement is as promising as it was five years ago. In terms of

total compensation, engineers reported an average compensa-

tion of $108,560, with bonuses and other incentives included,in 2015. (In contrast, the average compensation was $103,680 in

2010 and $106,482 in 2014).

Even though many respondents are concerned that com-

pensation is not keeping pace with workflow, almost two-

thirds of engineers felt that they were adequately compensated

for their work this year. At the same time, in contrast to ques-

tions about compensation, the vast majority of engineers

reported that they feel satisfied and intellectually challenged in

their current positions.

In general, the engineering profession appears to be moving

in a positive direction. However, many engineers may haveto adjust their opinions slightly to what constitutes a positive

employment outlook, especially as the industry becomes more

engrained in the global economy. The U.S. Labor Department

Bureau of Labor Statistics (BLS) predicts that electrical and

electronics engineers will have around 318,700 jobs in 2022—

almost 50,000 more than in 2014, but also about 17,000 fewer

jobs than the bureau recorded in 2013. Perhaps most impor-

tantly, many engineers remain satisfied with a profession

that affords them the opportunity to get paid for indulging in

their passions.

JAMES MORRA, associate content producer at Electronic Design ,

wrote this report. Data conducted and compiled by Jay McSherry.

It’s Not All Aboutthe Money

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SALARY

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2O15 ENGINEERING

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4/13

Years in theprofession

Work locations

Age

Years at present company

3%

8%

15%

23.5%

42%1-9

10-19

20-29

30–39

40 +

Highest education level

7%

30%

A s s o ci a t e s

D e gr e e

B a ch el or ' s

D e gr e e

Gr a d u a t e

S t u d i e s

M a s t er ' s

D e gr e e

D o c t or al

D e gr e e

25%

19%

10%

25–34

6%

THE TYPICAL ENGINEER

“To remain in the technical path, you haveto be a life-long learner. Employers arelooking for skills that a college educationitself does not provide.”

55+ 57%45–5425%

35–4410%

20-24

Under 20

25-29

30-3435-39

40+

10%

13%

18%14%

20%

26%

“If you’re drivenby curiosity and have

the aptitude, you won’tbe happy doing anything

but engineering.”

5%IL

5%NY

5%OH

4%MA

4%

MI

4%

FL

3.5%

CO

3%

AZ

7%

TX

18%

CA

The typical engineer is growing older and edging closer to retirement age. “Engineers from the baby-boomer generation are retiring faster than engineers are graduating from college,” lamented onerespondent. Most engineers are of the opinion, however, that retiring engineers have not mitigatedthe intense competition for engineering expertise. At the same time, “new peopleare needed,” said one respondent, “and a lot of technological opportunities exist.”

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5/13

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62%

108,503

30%SAY

HIRINGWILL

GROW

11%SAY

HIRING

WILLREDUCE

58%

SAYHIRINGWILLMAINTAIN

OPEN TOOPPORTUNITYYESNO

SAY YES

YES

NO

53%70%

30%

% Contacted by a recruiter this year

Is your organization more focusedon employee retention this year?

EMPLOYMENT OUTLOOK

Actively seeking a new position

Average Compensation

Average bonusCash $3,880Stocks/options $2,616Other $2,500

MORE EQUALLY LESS

How competitive is the averageengineer’s compensation?

COMPENSATION

19%40%

1.5%$ $

41%

Average compensationincrease

Many engineers are optimistic that technological advancements willstrengthen demand for their expertise going forward. But many of the same

engineers also think that they are increasingly viewed as “commodities” andnot as “valued contributors,” as one respondent noted.

“Things are better now than five years ago with therecession, but overall engineering careers havebeen on a downward trend for a while, in my opinion.”

57%9%34%

Is an engineeringcareer as promisingtoday as it was five

years ago?

In general, engineering salaries have not changed significantlyin recent years, with many engineers referring to a “glassceiling” on compensation rates and downward pressure fromcost-averse corporations and H-1B workers. While compensation varies widely based on geographic location and job function,the average compensation rate grew more from last year thanit has in almost five years.

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6/13


$106k

COMPENSATION BREAKDOWN

By job functionBy industry

ICs and semiconductors

Components and subassemblies

Avionics/marine/space

Medical electronics

$144k

$124k

$123k

$119k

Computer systems/boards/peripherals/software

Government / military

Communications systems/equipment

$117k

$115k

$110k

$109k $106k

$101k

$98k $97k

$88k

Test and measurement equipment

Automotive electronics

Research & development

Software

Consumer electronics

Industrial controls systems/equipment

Consultant

Contract design or manufacturing

$110k

$133k$130k

$105k

EXECUTIVE/OPERATING

MANAGEMENT

ENGINEERING

MANAGEMENT

DESIGN & DEVELOPMENT

ENGINEERING

By location

103k103k

110k

123k

100k

105k

120k

116k

130k

By years ofengineering experience35-39 years $123,212

25-29 years $116,623

30-34 years $115,780

20-24 years $112,053

15-19 years $105,917

40 years ormore $105,766

10-14 years $90,093

5-9 years $84,754

1-4 years $68,100

Less than 1 year $60,389

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7/13

CONCERNS AT WORK

Finding the optimalcomponents for my designs

#2

#3

#1

Having to compromisemy design approaches

Insufficient fundingfor projects

Insufficient people to

get the job done

Inability to

adequately testproducts

Lack of designmanagement

direction

Seniority issues

Management takingcompany in wrong

direction

Competitivemarket

pressures

Time-to-market

pressures

Shrinkingproduct life

cycles

Second sourcingfor components

Politics at work

@$#%#5

#4

#6

#9

#7

#13

#12

#10

#11

#8

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8/13


Reasons engineers would leave the profession

No further chance for advancement 16%

Do something less stressful 22%

Do something more fulfilling 23%

Curious about other opportunities 31%

Start a business 22%

Switch to teaching 12%

Ready to retire 19%

Job Satisfaction

Extremely satisfied 21%

Very satisfied 32%

Satisfied 35%

Not very satisfied 10%Not at all satisfied 2%

Have considered leaving theprofession

Feel compensation shouldincrease on average by

64%

21%

The majority of engineers work for longhours under significant pressure fromemployers, but rarely view their compensationas the spoils of war. On the contrary, mostengineers are satisfied with their personalcircumstances, feel sufficiently challenged intheir current position, and believe they areadequately compensated. “Engineering is acareer where you get out of it exactly whatyou put into it,” opined one respondent.

54hrs/weekat the office

Theaverage

engineerworks

and at home andother locations

“Engineering has lost a lot of its passionas evidenced by the lack of commitmentengineers are making to their employers,due to the lack of commitment fromthe employers themselves.”

34%

Feel adequatelycompensated

JOB SATISFACTION

would recommendthe profession toa young person

feel sufficiently challenged

feel somewhatchallenged

89%S

58%

32%

1. Challenges that accompany the design of new products

2. Researching potential design solutions

3. Opportunity to design products that can benefit society

4. The compensation you receive for the work you do

5. Working in team situations with peers

6 .Working independently of others

7. The recognition you get from others for the work you do

8. The pressures associated with solving design problems

Most important factorsin job satisfaction

“My career has offered me great flexibility personallyand professionally—this is somewhat dependent on thecompany you work for, but the pay is good, and thechallenge of solving tough problems is very rewarding.”

“An engineering profession, if done properly, can keepyou mentally sharp, diversifies your skills, and keepsyou abreast of technological advancements. Engineersare likely to be well suited to move into many newprofessions, if their motivations drift in other directions.”

ENGINEERS TALKINGFROM THE PULPIT

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9/13

ISSUES KEEPING

ENGINEERS

UP AT NIGHT

Concernsabout

job security

Loomingprojectdeadlines

Product reliabilityissues

Outsourcingissues

Productquality issues

Price issues

29%

31%

13%

31%23%

15%

38%Staying current

with newtechnology

The majority of engineers point to time constraints as the rootof their professional concerns, especially as engineering jobsare reduced and the people left behind are forced to assumemore responsibilities on shorter deadlines.

Dealing with

staff reductions

15%“It is impossible to stay current; there is too much information and not enough time. It is not possible to haveany knowledge depth on new technologies.”

“What worries me is the rapidly changing expectations of experience. Employers do not want to hire you for aposition where you will have to learn new skills.”

“It doesn’t matter how efficient we become if we are not supported to test our products. Testing is anafterthought, and quality is long-gone.”

“Unfortunately, the prevailing reason for outsourcing is purely economical, not technical, which jeopardizes thequality of products.”

ENGINEERS TALKING IN THEIR SLEEP

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10/13

52%

7%

OF COMPANIES

COMPANIESPLANNING TOOUTSOURCE

OUTSOURCE WORK

PUT EXISTINGRESOURCES

TO BETTER USE

LACK OFIN-HOUSE

TALENT

EASEWORKLOAD

SAVE MONEYSAVE TIME

SOFTWARE ENGINEERING/DEVELOPMENT 52%

MANUFACTURING/ASSEMBLY 48%

DESIGN 38%

SOFTWARE VERIFICATION/TEST 22%

R&D 21%

CAD/CAE 21%

DESIGN VERIFICATION 16%

DRAFTING 12%PCB LAYOUT 12%

FINAL TEST 17%

JOBS BEING OUTSOURCED

FEWER ENGINEERING JOBS AVAILABLE 42%

LOWER EMPLOYEE MORALE 41%

FEWER OPPORTUNITIES FOR ADVANCEMENT 35%

NEW HIRES AT REDUCED SALARIES 34%

SKILLS VALUED LESS 30%

SALARY REDUCTIONS FOR EMPLOYEES 24%

OPPORTUNITY FOR MORE INNOVATIVE PROJECTS 23%

IMPORTANT ASPECT TO BUSINESS GROWTH 16%

SKILLS VALUED MORE 14%

NEW HIRES TO SUPPORT OUTSOURCING EFFORTS 12%

OPINIONS ON OUTSOURCING

Where jobs are going

Reasons companiesare outsourcing

34% 49%

35%41%24%

SA3%

PACRIM9%

MX9%

EU20%

CN28%

IN31%

US58%

THE NECESSARY EVIL OF OUTSOURCING

CA6%

With an apparent lack of qualified engineers,shortened product timescales, and increasinglyspecialized areas of expertise, outsourcing hasemerged as a way to keep the wheels of progressturning, even as many protest that it harms thefuture of the profession.

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11/13


#1 obstacle to stayingcurrent with information:

Finding the time.

CONTINUING

EDUCATION

COLLEGE For which of these forms of educationdoes your company reimburse coststo engineers?

Trade shows/conferences 55%

Seminars 54%

College tuition 38%

Engineering textbooks 35%

Engineering association dues 27%

Certifications 26%

Publication subscriptions 26%

Online training 25%

Staying current with new and emerging technologies remains a central issue amongengineers, especially as it becomes more important in the eyes of employers. Heavyworkloads, productivity pressures, and inadequate support from short-sightedmanagement are among the main obstacles to continuing education, according to surveyresults. “The biggest challenge,” said one respondent, “is to convince the managementthat staying current is an investment in the future that might not pay off immediately.”

How engineers are keeping up

Engineering/technology publications 68%

Engineering/technology websites 56%

Online discussion forums 22%

18%In-house educational programs

38%E-books

48%Engineering textbooks

40%Trade shows/conferences

45%Vendor-sponsored education

69%White papers

22%Engineering association-sponsored meetings

19%User group meetings/Meetups

57%Engineering videos

63%Webcasts

55%Seminars

21%Online college courses

11%In-classroom college courses

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12/13

51%of organizationshave difficultyfindingqualifiedcandidates

51%

43%

33%

VerySomewhat

Not very

16%

Importance of security in products

Companies that will produce connected products

How importantwillsecurity be in

future products ?

SAMEMORE

LESS

43% 3% 54%

26%

27%

27%

37%

40%

40%

24%

33%

ANALOG

RF

POWER

DIGITALEMBEDDED

SOFTWARE

MECHANICALDESIGN

SYSTEMS

ENGINEERING

PREPARING FOR THE INTERNET OF THINGS

The Internet of Things is expected to change the way in whichindividuals interact with technology and engineering companiesdesign their products. Many companies are preparing for thisparadigm shift with strategic acquisitions of analog and mixed-signalchipsets, in addition to Wi-Fi technologies. These maneuvers arebeing reflected in the engineering specialties that are currentlyin high demand. . . .

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13/13

TEST AND MEASUREMENT

62%Think their companyinvests sufficiently intest equipment 17%

Companies that havereplaced box test instruments

with modular solutions

65%Think testing is asignificant challengein terms of timeconsumption

62%Think their companyoffers sufficient trainingand documentation

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electronic design 2015 salary survey

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